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- The United States Securities and Exchange Council has lodged an allegation against Ripple’s XRP
- Ripple has pushed back the claims that were made against it and answered for each paragraph that the 93-pages complaint had
- As per the complaint, the price of XRP is slowly reaching to that of BTC without proper notice
As we know that the SEC had lodged allegations against Ripple Labs, but they pushed the allegations back, this Friday. SEC (The United States Security and Exchange Commission) has lodged an allegation that ignores the utility of XRP’s cryptocurrency. Based on a filed complaint by the agency, Ripple alleged in response. They confidently pushed back upon the allegation, whose claim was that the firm based in San-Francisco has violated the United States’ security laws for over a period of seven years. They claimed that the firm had done this violation by selling XRP tokens, which was worth $1.3 billion. This particular liquidation of funds made by XRP was considered unlawful by the U.S securities Council. It claimed that it has to maintain its prime utility purposes for XRP to stay as a registered firm.
Ripple’s Response to the Allegations
Ripple responded to each of the paragraphs filed by the United States Securities and Exchange Council in its defense. The firm was very confident in dealing with all the raised questions and the allegations made against them. The firm stated that it is not an investment or securities contract and the firm’s sales and distribution are therefore not an investment contract either. As per the filed complaint, Ripple basically got sued by SEC, in December 2020. The SEC has clearly alleged the company. Chris Larsen, the chairman of the company and Brad Garlinghouse, CEO of the company, has sold XRP shares worth $1 billion, paid as well as promoted the token of the third parties to support the crypto.
What the Allegations meant and how it got Reviewed
Several parts of Ripple’s responses lay its primary focus on the main functioning of XRP. From the company’s view, the complaint filed by SEC had neglected the fact that XRP is actually an open-source and claimed that the price of XRP has been correlated with the rising cost of BTC and ETH. Ripple also claimed that the SEC has not sent any prior notice that the sales of XRP are violating the laws of the agency and state.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
